Exam 16: Real Estate and High-Risk Investments

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Alberto bought commercial property in 1980 for $50,000.In 2011,he traded it for similar property valued at $150,000 and received $10,000 in cash.His taxable income from this transaction in 2014 would be

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As a conservative investor,you can profit by selling a call on stock already owned,giving the buyer the right to purchase your shares at a fixed strike price for a time period.

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The amount of cash flow in income-producing real estate investments depends on

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Scams and frauds abound with collectibles as investments.

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Capital improvements are costs incurred in making changes in real property that add to its value.

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The cost of financing investment property is shared by the government due to tax deductions on interest expenses.

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A buyer of a futures contract benefits if the price of the commodity increases.

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People who want to invest speculatively in currencies can do so on the forex exchange.

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Examples of residential real estate investments include office buildings,medical centers,and gas stations.

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When one trades equity in one property for equity in a similar property without receiving cash,he or she pays

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A tax-free exchange is another tax treatment that results when a real estate investor trades equity in one property for equity in a similar property.

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The amount of money left over after paying operating expenses in an income producing investment is called profit.

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Commercial property purchased to rent to other is designed for residential living such as houses,duplexes,apartments,mobile homes,and condominiums.

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Borrowing to finance a real estate investment is more expensive than borrowing to buy one's own home.

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____ is not an example of a capital improvement.

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High-risk investments include

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Investors choose derivatives

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Max paid $15,000 and borrowed $90,000 for an investment worth $105,000.What was the loan-to-value ratio?

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An option is a contract that ​ All of these.

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The discounted cash-flow method is an effective way to estimate the value or selling price of a real estate investment.

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